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HomeMy WebLinkAbout2021 10-19 HCPAGENDA BROOKLYN CENTER HOUSING COMMISSION October 19, 2021 7:00 p.m. Virtual Webex Meeting Call In Number: 1(312) 535-8110 Meeting number (access code): 177 912 4335 Meeting password: 7MvVnQy2Jy2 Link: Join meeting 1) Call to Order: 7:00 p.m 2) Approval of Agenda 3) Approval of Housing Commission Meeting Minutes from August 18, 2021 4) Tenant Protection Ordinance Discussion and Draft Ordinance Review 5) New Neighbor Welcome Program a) Delivery Update 6) City Council Liaison's Report 7) Chairpersons Report 8) Other Business 9) Adjournment MINUTES OF THE PROCEEDINGS OF THE HOUSING COMMISSION OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND STATE OF MINNESOTA REGULAR SESSION AUGUST 18, 2021 CALL TO ORDER The Brooklyn Center Housing Commission was called to order by Chairperson Goodell at 7:00 p.m. The meeting was conducted via Webex. ROLL CALL Chair Mark Goodell - Present Commissioner Paul Oman - Present Commissioner Zarita Hester — Present Commissioner Johnson Yang — Present Commissioner De'Ja' Carter - Present Also present was Staff Liaison Jesse Anderson. APPROVAL OF AGENDA There was a motion by Commissioner Oman and seconded by Commissioner Yang to approve the agenda as submitted. The motion passed. APPROVAL OF MINUTES Chair Goodell requested that the date be corrected from August to May. Mr. Anderson agreed. Mr. Anderson stated there was no recording of the meeting, so the minutes are not as detailed as usual. Chair Goodell requested the following correction: -Page 2, under "New Neighbor Welcome Program", replace "hew" with "new" There was a motion by Commissioner Oman and seconded by Commissioner Hester to approve the minutes of the Housing Commission meeting on May 18, 2021 as amended. The motion passed. NEW NEIGHBOR WELCOME PROGRAM DISCUSSION Chair Goodell stated the New Neighbor Welcome Program is a responsibility of the Housing Commission. He added Commissioners deliver Brooklyn Center Welcome Bags to new residents, containing a variety of materials regarding City services and programs, and other helpful Page 1 information. He noted bags are typically only delivered during the summer months, but there have been no bag deliveries yet this year. Mr. Anderson stated he did not receive new ownership records from December 2020 until about a month ago. He added City Staff uses home ownership information generated through Hennepin County sales data, and the current map has 222 new homeowners. He noted the list cannot be sorted by street, but it can be sorted by neighborhood and then street number, and there are approximately 10-15 new homeowners per neighborhood. Chair Goodell asked whether Mr. Anderson can send him the list so he can sort it. Mr. Anderson agreed, adding the list is an Excel document. Chair Goodell stated Mr. Anderson usually provides maps and lists, and the Commissioners decide on a few dates and split up into groups to cover a few neighborhoods in one evening. He added the Commissioners are out for about 1-1.5 hours and are limited by daylight hours. He noted the Commissioners do multiple deliveries in the summer, and sometimes do a delivery session later in the fall. Chair Goodell stated the Welcome Bag deliveries are a great way to get out and meet new residents and welcome them to the Brooklyn Center community. Mr. Anderson reviewed a table of contents of what is included in the welcome bags, including an introductory letter in multiple languages. He added an online services card should be added, including information about the City's new permitting software and online special assessment payments. He added information regarding the City's downpayment assistance program could be included, although the new homeowners already own their home. Chair Goodell stated it would still be good to include that information, for people to pass on to friends and family. Mr. Anderson stated he would check with the Brooklyn Center Health Resource Center to see if they have any updated information. Chair Goodell asked whether the "Shop, Eat and Meet" brochure is up to date. Mr. Anderson confirmed this. He added a staff member is working on updating the parks and trails map, and the quick reference guide is updated. He noted most of these homeowners have already received the current issue of the City newsletter, and it would decrease the amount of paper that is needed if the newsletter is not included. Mr. Anderson stated it would be good to add a copy of the application for the new Public Safety Committee. He added that application is also included in the City newsletter. Chair Goodell asked whether information on the City's new notification service, "Code Red", is included. Mr. Anderson stated he can add that to the contents. Page 2 Chair Goodell asked whether the housing survey should be included, or if that is finished. Mr. Anderson stated he is unsure. He added he can see if there is any information regarding Zoning Code review meetings, although it might be too late by the time the bags are delivered. Commissioner Hester suggested it might be good to have a schedule of City Council meetings, so residents are aware of when the meetings are held. Mr. Anderson stated that schedule is included in the quick reference guide. He agreed to check on that. Chair Goodell asked whether there are any new coupons. Mr. Anderson stated there are no new coupons. He added the current coupons are from Rose Garden, Curves, and a pest control company, as well as the City liquor store and Community Center. Chair Goodell asked whether the golf course has provided coupons in the past. Mr. Anderson stated he is not sure. Chair Goodell stated Commissioners have tried to recruit businesses to provide coupons in the past with limited success. He added that could be something that could be pursued this year. Mr. Anderson stated he contacts the Brooklyn Center Business Association to ask local businesses to provide coupons, although he has not done so in the past year. He added, in his conversations with Brooklyn Park staff, they have said it is a lot of work to get local businesses to donate coupons. Chair Goodell asked whether the bags are the same, with the updated logo. He added he has a lot of bags from last year. Mr. Anderson stated Chair Goodell can bring the fully assembled bags to City Hall and City Staff can replace the contents. He added the staff member who usually assembles the bags is on vacation this week. Chair Goodell stated, with regard to possible bag delivery dates, the Commission can schedule 3 or 4 dates depending upon people's availability. He added bag delivery is not a requirement, but everyone's help is appreciated, and City Councilmembers and other Commissioners are often willing to help. Chair Goodell asked whether the week of August 27 works for everyone. He added he is not available on Tuesday or Wednesday of that week. Commissioner Wong asked what time the deliveries would be. Chair Goodell stated bag delivery usually starts around 6:00 p.m., but whatever works best for everyone. He added they try to take advantage of daylight to read house numbers, which gets harder into September. Commissioner Oman stated it might be a good idea to wait until after the State Fair, for people who might not be home. He added the week of September 7 would be a good time to start. Chair Goodell stated he is not available September 7 and 8 due to conflicting meetings. He added he can meet ahead of time, bring materials and get people going. He noted he is available on Thursdays. Commissioner Yang stated he is pretty much open. Page 3 Commissioner Carter stated she will not be available the week of September 7, 2021 as that is the first week of school and she is a school worker. Chair Goodell suggested Thursday, September 9 as a possible date. Commissioner Oman stated he may have a conflict that evening. Chair Goodell stated there are two other Commissioners who are not on this meeting who might also be available to deliver bags. Commissioner Carter suggested that a poll could be taken of the Commissioners with potential dates and select the dates that have the most availability. Chair Goodell stated that is a great idea, I will be happy to do that. He added he will send out an email with several dates during the first 3 weeks of September and coordinate welcome bag materials with Mr. Anderson. Mr. Anderson stated the Housing Commission's next meeting is scheduled for September 21, which could be used as a potential delivery date. He added a few joint Planning Commission/Housing Commission meetings are planned to be scheduled in September. He noted the Planning Commission meets on Thursdays, so the potential dates will probably be September 9, 21 and 23, 2021. Chair Goodell stated he will drop off the welcome bags at City Hall this week. He added he will send out a poll and get some delivery dates on the calendar. COUNCIL LIAISON REPORT In the absence of the Council Liaison no report was given. Chair Goodell asked whether Mr. Anderson has anything to report from the recent City Council meeting. Mr. Anderson stated the City Council amended the face mask mandate at this week's meeting, which he was told was going to relax regulations on schools. He added he saw the revised Resolution that was adopted by the City Council to give exemptions to the face mask mandate, and the version he reviewed did not relax regulations on schools. He noted he did not attend the City Council Meeting. Mr. Anderson stated the City Council is working on the budget right now, and had a budget work session last night. He added a point of note for the budget is that TIF 3 District is decertifying this year, which puts a large section of the commercial district back into regular tax rolls. He noted this is a good thing for overall tax revenue, but the TIF 3 District provides the funding for housing programs, which will now go to the County, schools and the City General Fund. Chair Goodell stated there have been proposals to add new districts over the years, for development projects when they are under consideration, to correct the loss of TIF 3 District. Page 4 Mr. Anderson agreed, stating the TIF 3 District is massive, so this will be a big change in the overall budget, as well as a different layout of the tax base. He added Community Development Director Meg Beekman gave a presentation on TIF for the Housing Commission. He noted, when a TIF District is set up, the increase in value in tax revenue goes directly back to the District, with restrictions for what the funding can be used for. Chair Goodell requested clarification regarding the location of TIF 3. Mr. Anderson stated the TIF 3 District is a large portion of the Central Commerce Overlay District, the City's commercial area. CHAIRPERSONS REPORT Chair Goodell had nothing to report. OTHER BUSINESS Mr. Anderson stated the Housing Commission has discussed the draft tenant protection ordinance and potential updates related to affordable housing. He added City Staff have been in consultation with the City's attorneys and met with the City of St. Paul, as they had a lawsuit related to a similar ordinance that was revoked and has to be rewritten. He noted City Staff are trying to ensure that the Brooklyn Center ordinance does not have anything in it that will prompt a similar lawsuit. Mr. Anderson stated the draft ordinance is also being reviewed by HomeLine. He added he hopes that a draft ordinance will be ready for review by the Housing Commission in a few months. Mr. Anderson stated the Zoning Code update meetings that were previously discussed will probably be scheduled in September or October 2021, and he will provide more information when he has it. ADJOURNMENT Chair Goodell thanked all the meeting attendees. He added he will send out the poll and the Commission can get some dates on the calendar for bag delivery. Chair Goodell adjourned the meeting at 7:35 p.m. Chair Mark Goodell Page 5 DATE: October 19, 2021 TO: Housing Commission Member's FROM: Jesse Anderson, Deputy Director of Building and Community Standards SUBJECT: Tenant Protection Ordinance Recommendation: It is recommended that the Housing Commission review and discuss the proposed tenant protection ordinance and provide feedback for the City Council. Overview City staff have had multiple discussions with the City Council relating to affordable housing policies and programs. The City is currently working with the Center for Urban and Regional Affairs (CURA) and Research in Action (RIA) on a citywide housing study. That work is completed its engagement phase, and is anticipated to be completed in early 2022. The deliverables from the study will be used to complete a Housing Policy Action Plan to address the housing priorities in the city. Staff is anticipating moving forward with programs and polices based on the results of that study. However, Brooklyn Center and the Twin Cities region are facing continued and extreme low vacancy rates. According to a recent 2020 Census Report (hops://www.census.gov/library/stories/2021/08/united-states-housing-vacancy, declined-in-past-decade.html), Minneapolis has the lowest vacancy rate among the 30 largest U.S. cities. In addition to a significant and sustained housing shortage, the state legislature recently repealed the eviction moratorium. The state has created an off -ramp process to step back from the moratorium, but already Brooklyn Center has seen increased calls about evictions, and is seeing an increased number of filings. With the lifting of the eviction moratorium, landlords can once again get rid of unwanted tenants through non -renewals, avoiding the eviction process altogether. Staff have been working with the City Attorney's office to draft an ordinance relating to tenant protections. This ordinance was to include multiple areas of concerns from tenants. • Just Cause Non -renewal • Pre -eviction Notices • Maintenance Fees • Damage Deposits • Material changes to the lease • Discrimination relating to public assistance status Based on the current low vacancy rates and the urgency created by the phasing out of the Eviction Moratorium, staff thought it to be necessary to expedite the ordinance relating specifically to items addressing evictions and non -renewals. Putting anti -displacement measures into effect sooner rather than later is intended to get ahead of a growing problem, and provide renters with more leverage in negotiations with landlords. The proposed ordinance amendment summary: • Pre -Eviction Filing Notice requires an owner of an affordable housing unit to provide a 30 day written notice to a tenant prior to filling an eviction. Evections would be restricted to non-payment of rent or Material Breach of a Lease Just Cause Non -Renewals establishes requirements that prevents a property owner or property manager from non -renewing an existing tenant lease without just cause. o Non -Payment of Rent o Material Non-compliance o Refusal to Renew o Occupancy by property owner of family member o Building Demolishing or Conversion o Rehabilitation or Renovation o Complying with a Government order to vacate o Occupancy conditioned on employment • Waiver is not allowed by a tenant to waive their rights under the new ordinance. • Private Enforcement — A tenant or former tenant of an affordable housing united harmed by an owner in violation of this ordinance may bring and action again the owner in district court. Further, staff have received feedback from ACER, Homeline, and the Housing Justice Center regarding the proposed ordinance. It was strongly recommended from all agencies to expedite the ordinance specifically relating to evictions and non -renewals. Background Housing and the policy issues related to housing have become some of the most pressing and important matters facing communities today. For most suburban communities, housing comprises a significant majority of a cities land use and tax base. Maintaining and preserving a safe, quality, and desirable housing stock is critical to a community's long term economic health and resiliency. Further, a diverse housing stock which offers a wide range of housing choices and price points ensures that a community can be resilient through economic ups and downs as well as provide housing options for a diverse population throughout their lives. In addition to maintaining a quality and diverse supply of housing, communities are more and more becoming focused on concerns regarding livability and accessibility of housing. Brooklyn Center's Current Rental Housing The result of the regional trends facing the Twin Cities are being felt in Brooklyn Center. Vacancy rates in the community remain lower than the regional average, hovering around 2 percent. This is common in communities with more affordable rental units. Thirty-seven percent of Brooklyn Center's housing stock is comprised of rental units. Of the City's single- family housing, about 8 percent are rental. Nearly 100 percent of the multi -family housing in Brooklyn Center are one and two bedroom units built between 1961 and 1971, and nearly all of it is naturally occurring affordable housing (NOAH). Average rents in Brooklyn Center are naturally occurring affordable because the market rents, based on the age and condition of the units make them affordable at around 50 percent AMI in the metropolitan area. Rents in Brooklyn Center are lower than the regional average. Approximately 90 percent of all of the housing units in Brooklyn Center are NOAH. While NOAH properties are affordable, they can be at risk of being lost as market demand increases and rents continue to go up. They can also experience disinvestment over time, causing deterioration, loss of value, and most importantly poor quality or unsafe living situations if they are not properly inspected and maintained. The City's 2040 Comprehensive Plan identifies several broad housing goals 2040 Housing & Neighborhood Goals: • Promote a diverse housing stock that provides safe, stable, and accessible housing options to all of Brooklyn Center's residents. • Recognize and identify ways to match Brooklyn Center's housing with the City's changing demographics. • Explore opportunities to improve the City's housing policies and ordinances to make them more responsive to current and future residents. • Maintain the existing housing stock in primarily single-family neighborhoods through proper ordinances, incentive programs and enforcement. • Explore opportunities to incorporate new affordable housing into redevelopment areas that promote safe, secure and economically diverse neighborhoods. In addition to these goals, the 2040 Comprehensive Plan identifies implementation strategies as well as resources and tools for achieving its housing goals. These are contained in Chapters 4 and 9, of the Housing and Implementation chapters respectively (attached). REVISED DRAFT 10-14-21 CITY OF BROOKLYN CENTER Notice is hereby given that a public hearing will be held on the day of , 2021, at 7:00 p.m. or as soon thereafter as the matter may be heard to consider an ordinance related to tenant protections. City Council meetings are being conducted by electronic means under Minnesota Statutes, section 13D.021 and information on how to connect to the meeting is provided on the City's website. Please notify the City Clerk at 763-569-3306 if there are any questions about how to connect to the meeting. ORDINANCE NO. AN ORDINANCE AMENDING CHAPTER 12 OF THE CITY CODE OF ORDINANCES REGARDING TENANT PROTECTION THE CITY OF BROOKLYN CENTER DOES ORDAIN: Article L Legislative Findings. The City Council of the City of Brooklyn Center hereby finds and determines as follows: a. The City has approximately affordable housing units, which constitutes a majority of the rental units within the City; b. Tenants of affordable housing units have an income of 80% or less, and in some case much less, of the area median income and so have few resources to fight predatory practices, unjustified repair fees, retaliation, or other practices that exploit tenants within affordable housing buildings; c. The City Council regularly receives complaints at its meetings from residents of affordable housing units regarding how they are treated by the owners and the resulting negative emotional and financial impacts of those interactions; d. The City Council previously adopted Section 12-912D to establish certain tenant protections for those living within affordable housing units as an initial step to address the exploitation of these tenants; e. The City Council determines it is necessary to expand those initial protections in order to promote housing stability and protect the health, safety, and welfare of those living within affordable housing units; and The tenant protections adopted as part of Section 12-912D are intended to be part of the health and safety covenants in Minnesota Statutes, section 504B.161, subdivision l(a)(4) and as additional conditions provided for by ordinance as acknowledged in subdivision 4 of the same statute. 1 0 =1 " " BR291\4\672010.v10 BR291\4\672010.v10 BR291\4\672010.v10 REVISED DRAFT 10-14-21 Article IL Brooklyn Center City Code, Section 12-201 is amended by adding the following definition and renumbering the subsequent definitions as needed: _ Just Cause — any of the bases listed under Section 12-912D(5) upon which an owner of an affordable housing building may terminate tenancy. Article III. Brooklyn Center City Code, Section 12-912D is amended by adding subsections 12- 9121)(4), 12-9121)(5), and 12-912(6) as follows, and renumbering the subsequent subsections as needed: 4. Pre -Eviction Filing Notice. Except as provided otherwise in this subsection_ an owner of an affordable housing unit shall provide at least 30 days' written notice to a tenant prior to filing an eviction action on the basis of either: (a) an alleged non-payment of rent_ or (b) an alleged material breach of a lease. a. Notices for Non-payment of Rent. For an allegation of any non-payment of rent, the notice shall_ at a minimum_ include the following information: The name_ mailing address_ and telephone number of Ahe person authorized to receive rent and fees on behalf of the owner: The total amount of money due and owing to the owner by the tenant: A specific accounting of the money due and owing to the owner by the tenant, including any past due rents_ any late fees_ and any other charges_ and The deadline by which the total amount due and owing to the owner by the tenant shall be paid to avoid an eviction action, which shall be no earlier than 30 days from the date on which the notice is delivered. b. Notices for Material Breach of a Lease. For an allegation of a material breach of a lease, the notice shall, at a minimum. include the following information: W The name, mailing address, and telephone number of the owner - A description of the specific conduct that the owner alleges is a violation of the lease_ including the dates of the violations and the persons who committed the alleged violations- f Identification of the specific clause of the lease alleged to have been violated - Notification that the tenant has the right to correct the alleged breach: f Notification of how the tenant may correct the alleged breach 0 =1 " " BR291\4\672010.v10 BR291\4\672010.v10 BR291\4\672010.v10 REVISED DRAFT 10-14-21 The deadline by which the alleged breach shall be corrected to avoid an eviction action, which shall be no earlier than 30 days from the date on which the notice is delivered and Q A copy of the lease attached to the notice. C. Exception for Expedited Eviction Actions. For an expedited eviction action filed pursuant to Minnesota Statutes. section 504B.321. subdivision 2, the owner shall provide the notice required by Section 12-912D(3)(d) at least three days in advance of filing the eviction action. d. Additional Notice Requirements. All notices under this subsection shall also include the following information: Notification that the tenant maybe evicted if they do not pay the past due rent or correct the alleged breach of lease by the deadline, as applicable: Information about accessing rental assistance by calling 211 or visiting hnps://www.21lunitedway.org/_ and Information about accessing legal help by visiting the Law Help Website at hLtps://www.lawhelpmn.ors/. e. Delivery of Notice. The owner, or an agent for the owner, shall deliver any notice required by this subsection personally or by first-class mail to the address of the affordable housing unit. Such notice may, in addition to but not in place of personal delivery or delivery by first-class mail_ be delivered to any email or other electronic means to the tenant at the tenant's email address or electronic account. f. Enforcement. In addition to any other remedy available at equity or law, failure to comply with the provisions of this subsection may result in adverse rental license actions, the imposition of administrative fines, or other penalties as provided in law. Waiver Not Allowed. The parties to a written or oral lease of an affordable housing unit shall not waive or modify the requirements imposed by this subsection. Any such waiver provision that may exist in a lease is not enforceable. 5. Just Cause Notice of Nonrenewal of Lease to Tenants. a. Just Cause Notice. An owner of an affordable housing unit shall not issue a notice of nonrenewal of tenancy_ refuse to renew_ or issue a notice to quit unless the owner is able to establish one or more of the following grounds for such action: Non-payment of Rent. The tenant fails to pay all monies owed to an owner after receiving a written notice of non-payment from the owner 0 =1 " " BR291\4\672010.v10 BR291\4\672010.v10 BR291\4\672010.v10 REVISED DRAFT 10-14-21 Material Non -Compliance. The tenant fails to cure a material breach of the lease after receiving a written notice from the owner* Refusal to Renew. The tenant refuses to renew or extend the lease after the owner requests in writing that the tenant do so - Occupancy by Property Owner or Family Member. The owner_ in good faith_ seeks to recover possession of the unit so that the owner or a family member may occupy the unit as that person's principal residence - Building Demolishment or Conversion. The owner either: 0 Elects to demolish the building in which the affordable housing unit is located convert it to a cooperative, provided the owner complies with the provisions of Minnesota Statutes_ chapter 515B_ or convert it to non-residential use, provided that the owner shall obtain all permits necessary to demolish or change the use before terminating any tenancy; Ciij The owner seeks_ in good faith_ to recover the unit to sell it in accordance with a condominium conversion, provided the owner complies with the provisions of Minnesota Statutes_ chapter 515B_ or jjj The unit is being converted to a unit subsidized under a local_ state_ or federal housing program and the tenant does not qualify to rent the unit under that program_ Rehabilitation and Renovation. The owner seeks_ in good faith_ to recover possession of the unit that will render the unit uninhabitable for the duration of rehabilitation or renovation Complying with a Government Order to Vacate. The owner is complying with a government agency's order to vacate, order to abate, or any other order that necessitates the vacating of the unit as a result of a violation of City Code or any other provision of law including, but not limited to. Section 12-911 related to conduct disorderly activities, or nuisances; or Occupancy Conditioned on Employment. The tenant's occupancy is conditioned upon employment on the property and the employment relationship is terminated. b. Owner Responsibilities. Any lease for an affordable housing unit shall include just cause notice language as follows: "The landlord under this lease shall not unilaterally terminate or attempt to terminate the tenancy of any tenant unless the landlord can prove that just cause exists. The reasons for termination or nonrenewal of tenancy listed in the City of Brooklyn 0 =1 " " BR291\4\672010.v10 BR291\4\672010.v10 BR291\4\672010.v10 REVISED DRAFT 10-14-21 Center's Just Cause Notice (Section 12-912D(5)L and no others_ shall constitute just cause under this provision." C. Nonrenewal Notice Requirements. An owner providing a notice of nonrenewal of a tenancy to a tenant of an affordable housing unit shall: (1) comply with all notice requirements under the lease and applicable law: and (2) include in such notice a written statement of the reasons for the nonrenewal and the facts in support of those reasons. d. Application. This Section applies to every lease, written or oral, for an affordable housing unit. e. Waiver Not Allowed. The parties to a written or oral lease of an affordable housing unit shall not waive or modify the requirements imposed by this subsection. Any such waiver provision that may exist in a lease is not enforceable. 6. Private Enforcement of Tenant Protection Ordinance. Any tenant or former tenant of an affordable housing unit harmed by an owner's violation of this Section 12-912D may bring an action against the owner in district court. Such person shall be entitled to all remedies available at law or in equity including, but not limited to, damages and injunctive relief. Any plaintiff that prevails in such action may be awarded reasonable attorney's fees and expenses. Article V. Effective Date. This ordinance shall become effective after adoption and upon thirty days following its legal publication. Adopted this day of , 2021. Mike Elliott, Mayor ATTEST: City Clerk Date of Publication Effective Date (Stfikee indicates matter to be deleted, double underline indicates new matter.) 5 0 =1 " " BR291\4\672010.v10 BR291\4\672010.v10 BR291\4\672010.v10